Haryana Chief Secretary T.V.S.N. Prasad has issued a strong directive to accelerate credit disbursement across the state, emphasizing the need to boost economic growth through enhanced banking support to key sectors. During a comprehensive review meeting of the state-level bankers' committee, Prasad called for immediate action to improve credit flow to agriculture, micro, small and medium enterprises (MSMEs), and other priority sectors.
Banking Performance Under Scanner
The high-level meeting held in Chandigarh saw the Chief Secretary scrutinizing the banking sector's performance across multiple parameters. As of December 2023, banks in Haryana have achieved 52% of their annual credit target, disbursing Rs 1,03,416 crore against the annual target of Rs 1,99,396 crore for the fiscal year 2023-24. While acknowledging this progress, Prasad emphasized the need for substantial improvement in the remaining months.
Agricultural credit emerged as a particular area of concern, with banks achieving only 46% of their target. The Chief Secretary directed financial institutions to streamline their processes and remove bottlenecks that hinder timely credit flow to farmers. He stressed that adequate and timely credit is crucial for agricultural productivity and farmer welfare.
Focus on Government Schemes and MSME Support
The review extended to various government-sponsored schemes where banking support plays a critical role. The Chief Secretary specifically highlighted the Mukhyamantri Antyodaya Parivar Utthan Yojana, urging banks to actively participate in this initiative aimed at uplifting the most economically vulnerable families. He instructed banks to organize special camps and outreach programs to ensure scheme benefits reach intended beneficiaries.
MSME sector financing received significant attention during the discussions. Prasad noted that while some progress has been made, there remains considerable scope for improvement in credit access for small businesses. He called for simplified procedures and faster processing of MSME loan applications to foster entrepreneurship and job creation across Haryana.
Digital Banking and Financial Inclusion Push
The meeting also addressed the importance of expanding digital banking services and enhancing financial inclusion. Bank representatives were directed to intensify efforts in promoting digital transactions and ensuring banking services reach unbanked populations. The Chief Secretary emphasized that technological adoption in banking is no longer optional but essential for comprehensive financial inclusion.
Senior officials from Reserve Bank of India, NABARD, and various public and private sector banks attended the crucial review meeting. The banking representatives assured the Chief Secretary of their commitment to improving credit disbursement rates and addressing the concerns raised during the meeting.
The state government plans to conduct follow-up reviews to monitor progress on the directives issued. The next state-level bankers' committee meeting will assess the improvement in credit disbursement rates and implementation of the action points discussed during the current review.
